Space Exploration Technologies (SPCX +0.15%) has finally completed its groundbreaking initial public offering (IPO). The IPO officially raised around $86 billion, with another $25 billion in capital expected via an upcoming bond issuance.
Potentially armed with more than $110 billion in cash, expect SpaceX to go on a spending spree. And if history is any indication, this spending should directly benefit another Elon Musk business that most people don’t yet think of as a space stock.
Space Exploration Technologies
Today’s Change
(0.15%) $0.23
Current Price
$153.23
Key Data Points
Market Cap
$2.0T
Day’s Range
$148.51 – $158.40
52wk Range
$147.11 – $225.64
Volume
447.2K
Avg Vol
216.5M
This Musk stock will benefit from SpaceX’s IPO
Tesla (TSLA +1.38%) is an electric vehicle (EV) stock, right? Think again. The company’s auto sales have declined for several years in a row, yet the business has an impressive $1.2 trillion valuation. That’s because the market no longer values the company strictly as an auto stock. Instead, Tesla is increasingly viewed as an artificial intelligence (AI) business. And soon, it may be viewed as a space stock, too.
Image source: Getty Images.
Take a look at SpaceX’s 370-page IPO prospectus, and you’ll find Tesla mentioned more than 80 times. SpaceX and its xAI segment have been major buyers of Tesla’s Megapacks, a containerized, utility-scale lithium-ion battery energy storage system. SpaceX uses these battery systems for its data centers. But they are also intended for use in SpaceX’s future moonbase: its permanent colony on the moon.
Today’s Change
(1.38%) $5.18
Current Price
$380.30
Key Data Points
Market Cap
$1.4T
Day’s Range
$368.60 – $387.81
52wk Range
$288.77 – $498.83
Volume
2.2M
Avg Vol
56.7M
Gross Margin
19.07%
SpaceX has also partnered closely with Tesla on Terafab, a chip manufacturing initiative that will help the company launch data centers into space and advance its space-based growth initiatives. The two firms are also co-developing Macrohard, an AI agentic platform. If orbital data centers are brought to fruition, this software could soon be run and deployed from space.
To be clear, Tesla is not yet a bona fide space stock. But its close ties to SpaceX are undeniable. And in the coming years, we could see more Tesla products — both hardware and software — launched into orbit and beyond.
Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
